I really liked this white paper from Vanguard. It’s fairly basic, but it applies whether you’re a highly sophisticated trader or a more “passive” investor. The core of the philosophy:
- Goals
- Balance
- Cost
- Discipline
These factors always matter. Having a structured set of goals helps define your process. Balance helps to diversify your ignorance. Costs will always eat into returns. And discipline is the ability to follow through with your process.
Read the full paper here.
Mr. Roche is the Founder and Chief Investment Officer of Discipline Funds.Discipline Funds is a low fee financial advisory firm with a focus on helping people be more disciplined with their finances.
He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance, Understanding the Modern Monetary System and Understanding Modern Portfolio Construction.
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